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Using Neural Measures of Economic Value to Solve the Public Goods Free-Rider Problem

Krajbich, Ian and Camerer, Colin and Ledyard, John and Rangel, Antonio (2009) Using Neural Measures of Economic Value to Solve the Public Goods Free-Rider Problem. Science, 326 (5952). pp. 596-599. ISSN 0036-8075. doi:10.1126/science.1177302. https://resolver.caltech.edu/CaltechAUTHORS:20091106-113059865

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Abstract

Every social group needs to decide when to provide public goods and how to allocate the costs among its members. Ideally, this decision would maximize the group’s net benefits while also ensuring that every individual’s benefit is greater than the cost he or she has to pay. Unfortunately, the economic theory of mechanism design has shown that this ideal solution is not feasible when the group leadership does not know the values of the individual group members for the public good. We show that this impossibility result can be overcome in laboratory settings by combining technologies for obtaining neural measures of value (functional magnetic resonance imaging–based pattern classification) with carefully designed institutions that allocate costs based on both reported and neurally measured values.


Item Type:Article
Related URLs:
URLURL TypeDescription
http://dx.doi.org/10.1126/science.1177302DOIUNSPECIFIED
http://www.sciencemag.org/cgi/content/abstract/326/5952/596PublisherUNSPECIFIED
ORCID:
AuthorORCID
Camerer, Colin0000-0003-4049-1871
Additional Information:© 2009 American Association for the Advancement of Science. 4 June 2009; accepted 25 August 2009; published online 10 September 2009. Supporting Online Material: www.sciencemag.org/cgi/content/full/1177302/DC1 - Materials and Methods; Figs. S1 to S15; Tables S1 to S3; References. Financial support from NSF–Integrative Graduate Education and Research Traineeship Program (I.K.), Gordon and Betty Moore Foundation (C.F.C., A.R.), and Human Frontier Science Program (C.F.C.) is gratefully acknowledged.
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Funding AgencyGrant Number
NSFUNSPECIFIED
Gordon and Betty Moore FoundationUNSPECIFIED
Human Frontier Science ProgramUNSPECIFIED
Issue or Number:5952
DOI:10.1126/science.1177302
Record Number:CaltechAUTHORS:20091106-113059865
Persistent URL:https://resolver.caltech.edu/CaltechAUTHORS:20091106-113059865
Official Citation:Using Neural Measures of Economic Value to Solve the Public Goods Free-Rider Problem Ian Krajbich, Colin Camerer, John Ledyard, and Antonio Rangel (23 October 2009) Science 326 (5952), 596. [DOI: 10.1126/science.1177302]
Usage Policy:No commercial reproduction, distribution, display or performance rights in this work are provided.
ID Code:16602
Collection:CaltechAUTHORS
Deposited By:INVALID USER
Deposited On:13 Nov 2009 23:22
Last Modified:08 Nov 2021 23:28

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